Influence of venture capitalist share holding on venture"s performance has been controversial and one of academic focus. We examine the performance measures of companies listed on China"s SME market and compare the performance of VC backed ventures an...
Influence of venture capitalist share holding on venture"s performance has been controversial and one of academic focus. We examine the performance measures of companies listed on China"s SME market and compare the performance of VC backed ventures and non VC backed ventures. By using one way ANOVA test and matched sample test, we find that the differnces of performances of VC backed and non VC backed ventures are not significant. We also briefly analyze the institutional background of Chinese venture investment market and find that the phenomenon is related to the background to some extent. We conclude that venture capitals do not promote the performances of companies. The venture capitals show no roles of advice services and certification.